M&G (Lux) Emerging Markets Income Opportunities Fund

ISIN
LU1582980824

Price (23.08.2019)
10.21

% Price Change
-0.05

Objective and investment policy

Objective

The fund aims to provide an annual yield of 4-6%. The fund also aims to grow capital over any five-year period.

Investment policy and strategy

Core investment: At least 80% of the fund is invested in emerging market assets including:

  • At least 25% in company shares across any sector and market capitalisation that are based, or do most of their business, in emerging markets;
  • At least 25% in bonds issued by companies or government-related institutions that are that are based, or do most of their business, in emerging markets;
  • Property-related securities.

The fund may invest in China A-Shares and in Chinese bonds denominated in Renminbi.

Other investment: The fund may invest in asset-backed securities, contingent convertible debt securities, other funds and cash or assets that can be turned into cash quickly.

Derivatives: The fund may also invest via derivatives and use derivatives with the aim of reducing the risks and costs of managing the fund.

Strategy in brief: The fund is actively managed. The fund employs a bottom-up approach to find the best investments to deliver on its income target while striving to generate long-term capital growth. . The fund’s allocation between bonds and shares is an output of the investment process and portfolio construction and, as such, will be the result of the investment manager investing in the best ideas, individually and relatively, across the capital spectrum.

Risks associated with the fund

The value and income from the fund's assets will go down as well as up. This will cause the value of your investment to fall as well as rise. There is no guarantee that the fund will achieve its objective and you may get back less than you originally invested.

The fund may use derivatives to profit from an expected rise or fall in the value of an asset. Should the asset’s value vary in an unexpected way, the fund will incur a loss. The fund’s use of derivatives may be extensive and exceed the value of its assets (leverage). This has the effect of magnifying the size of losses and gains, resulting in greater fluctuations in the value of the fund.

The fund may be highly concentrated at times in a limited number of investments or areas of the market, which could result in large price rises and falls.

The fund can be exposed to different currencies. Movements in currency exchange rates may adversely affect the value of your investment.

Investing in emerging markets involves a greater risk of loss due to greater political, tax, economic, foreign exchange, liquidity and regulatory risks, among other factors. There may be difficulties in buying, selling, safekeeping or valuing investments in such countries.

In exceptional circumstances where assets cannot be fairly valued, or have to be sold at a large discount to raise cash, we may temporarily suspend the fund in the best interest of all investors.

The fund could lose money if a counterparty with which it does business becomes unwilling or unable to repay money owed to the fund.

Further details of the risks that apply to the fund can be found in the fund's Prospectus.

Other information

The Fund allows for the extensive use of derivatives.

 

Fund Team

Michael Bourke

Michael Bourke - Fund manager

Michael Bourke was appointed fund manager of the M&G Global Emerging Markets Fund in October 2018. He joined M&G in 2015 and has managed the M&G (Lux) Emerging Markets Income Opportunities Fund since its launch in May 2017. Before this, Michael spent 10 years as an emerging markets equities analyst and portfolio manager for Legg Mason and FPP Asset Management. He previously worked at Deutsche Bank in roles related to equity derivatives trading. Michael has a BSc in Computer Science and Accounting from the University of Manchester and an MSc in International Banking and Finance from Heriot-Watt University.

 Team member biography
Charles de Quinsona

Charles De Quinsonas - Co-manager

Charles De Quinsonas was appointed fund manager of the M&G (Lux) Emerging Markets Corporate ESG Bond Fund upon launch in July 2019. Charles joined M&G's Fixed Interest team in May 2014 as an emerging market corporate bond specialist, and is co-fund manager of the M&G (Lux) Emerging Markets Income Opportunities Fund, as well as deputy manager of the M&G (Lux) Emerging Markets Bond Fund and the M&G (Lux) Emerging Markets Hard Currency Bond Fund. He has more than 10 years of emerging market corporate bond experience, with a deep knowledge of high yield credit. Prior to joining M&G, Charles worked at Spread Research in Lyon and New York, where he spent four years analysing a variety of high yield and emerging markets industrial credits. Charles holds a BBA from ESSEC Business School, a MSc in Corporate Finance from iaelyon School of Management and a BA (Hons) in Business & Finance from Sheffield Hallam University.

 Team member biography

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